VZCZCXYZ0001
RR RUEHWEB

DE RUEHAR #1179/01 2561153
ZNR UUUUU ZZH
R 121153Z SEP 08
FM AMEMBASSY ACCRA
TO RUEHC/SECSTATE WASHDC 7006
INFO RHEHAAA/WHITE HOUSE WASHDC//USTR//

UNCLAS ACCRA 001179 
 
SENSITIVE 
 
SIPDIS 
WHITE HOUSE FOR USTR 
E.O. 12958:N/A 
TAGS: EINV ETRD ECON EIND PGOV GH
 
SUBJECT: BIT TALKS: LIMITED PROGRESS DURING KUFOUR VISIT 
 
REF: STATE 91791 
 
¶1. SUMMARY:  (SBU) Exploratory discussions regarding a 
U.S.-Ghana Bilateral Investment Treaty (BIT) will likely 
generate only limited progress during President KufuorQs 
state visit to the United States (starting September 14, 
2008).  The Kufour Administration is shifting into 
election mode and shying away from initiating major new 
international agreements.  Robert Ahomka-Lindsay, CEO of 
the Ghana Investment Promotion Centre (a key advisor to 
Kufuor) stated that labor and environmental provisions in 
the U.S. model BIT would require further consultations 
with additional GOG ministries.  While not dismissing the 
possibility of concluding a BIT in the future, Ahomka- 
Lindsay suggested that a double-taxation agreement with 
the U.S. was a higher priority.  He lamented the 
unfulfilled potential of AGOA, and discussed his agencyQs 
priorities for attracting new investment to Ghana and 
increasing GhanaQs exports to the U.S.  Post believes the 
Ghana delegation is now hoping for a credit agreement with 
the EXIM Bank as an economic take-away from the visit. 
END SUMMARY. 
 
BACKGROUND 
---------- 
 
¶2. (SBU) An initial digital video conference was held on 
August 21 to discuss differences between the US and Ghana 
model BIT texts.  REFTEL dipnote was developed to formally 
restate three key USG questions to the GOG for the purpose 
of assessing mutual interest in undertaking formal BIT 
negotiations: 1) the acceptability of using the U.S. BIT 
model as a basis for negotiations, 2) an assessment of the 
challenging provisions of the U.S. BIT model, and 3) a 
list of potential non-conforming measures Ghana may 
propose in the course of a BIT negotiation.  REFTEL 
demarche was delivered.  Despite the implicit time 
pressures to reach a decision regarding mutual interest in 
negotiating a BIT prior to President KufuorQs visit to the 
United States, none of the three key questions were 
answered by the GOG in writing. 
 
GIPC CEO: NOT CHOMPING AT THE BIT 
--------------------------------- 
 
¶3. (SBU) To solicit feedback on the BIT, EMBOFFs called on 
Robert Ahomka-Lindsay, CEO of the Ghana Investment 
Promotion Centre.  Ahomka-Lindsay has served as CEO of the 
GIPC for nearly two years, following retirement from 
serving as Coca-ColaQs VP for Africa. 
 
¶4. (SBU) Ahomka-Lindsay tacitly conceded to the U.S. model 
for any potential negotiations, but noted that labor and 
environmental provisions were absent from GhanaQs model 
BIT text (and other concluded BITs).  He said that the 
labor and environmental provisions posed significant 
challenges and would require consultations with additional 
ministries, which would take additional time.  He pressed 
EMBOFFS for a formal memo outlining the differences 
between the U.S. and Ghana models.  EMBOFFS explained that 
USTR does not provide such analysis.  Questioning the 
benefits of a BIT for Ghana, Ahomka-Lindsay expressed that 
a BIT is less important to corporate decision makers than 
tax considerations.  Accordingly, he posited that a 
double-taxation agreement with the U.S. would be more 
useful to spur investment than negotiating a BIT. 
According to Ahomka-Lindsay, QAGOA gives us more than any 
BIT. 
 
GIPC CEO: THE POTENTIAL OF AGOA IS UNFULFILLED 
--------------------------------------------- - 
 
¶5. (SBU) Ahomka-Lindsay repeatedly stated that the 
economic potential created by the AGOA agreement has not 
been fulfilled.  He offered that the lack of foreign 
direct investment was a key problem Q- Ghana needs to 
start producing more diversified goods for the U.S. 
market.  He cited a statistic that U.S. FDI outside the 
extractive industries has been less than $30 million since 
AGOA was signed.  In contrast with GhanaQs exports to 
Europe, Ahomka-Lindsay also blamed the low level of U.S.- 
Ghana trade on deficiencies in transportation, including 
an insufficient number of direct flights for cargo, lack 
of direct container shipments, and JFKQs inefficient 
processing of fresh produce. 
 
¶6. (SBU) Under Ahomka-LindsayQs leadership, the GIPC is 
planning relationship-based investment promotion efforts 
with targeted multinationals and within targeted 
industries: agri-business, IT, tourism, financial 
services, professional services, manufacturing, petroleum, 
infrastructure and utilities. In addition, the GIPC is 
exploring establishing trade promotion offices in the 
United States, China, Germany and India.  COMMENT: 
Marketing aside, it is unclear how much government 
attention is being paid to making the ground-level reality 
of investing in Ghana efficient and hassle-free.  END 
COMMENT. 
 
COMMENT 
------- 
 
¶7.  (SBU) A Kufour appointee with ties to the PresidentQs 
inner circle, Robert Ahomka-Lindsay heads the lead 
technical negotiating entity for the GOG on investment 
agreements, and is among the key advisors accompanying 
President Kufuor on the upcoming state visit to the U.S. 
Given Ahomka-LindsayQs personal forcefulness, proximity to 
Kufuor, U.S. MBA, and international corporate experience, 
his assessments and opinions are likely to significantly 
inform the GOGQs economic goals during this visit. 
GhanaQs Foreign Ministry does not play a strong role in 
international economic policy making, and may have 
initiated talks on a BIT without the benefit of inter- 
ministerial consultations in Accra.  As the Kufour 
Administration shifts into election mode, substantive 
discussions and decisions on any major international 
agreements will likely not be possible until after the 
formation of a new administration next year.  According to 
contacts in the Ministry of Finance and Economic Planning, 
the PresidentQs delegation will try to finalize a credit 
agreement with the U.S. EXIM Bank as an economic take-away 
from the visit. 
 
Teitelbaum